DGAP-News: VERBIO Vereinigte BioEnergie AG / Key word(s): Quarter
Results/Temporary Suspension
VERBIO Vereinigte BioEnergie AG: BUSINESS DEVELOPMENTS IN THE 2ND
QUARTER OF 2012/2013 PROFITED FROM A DROP IN ILLEGAL IMPORTS
07.02.2013 / 08:00
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VERBIO AG: BUSINESS DEVELOPMENTS IN THE 2ND QUARTER OF 2012/2013 PROFITED
FROM A DROP IN ILLEGAL IMPORTS
- anti-dumping proceeding ongoing - registration requirement for
biodiesel imports from Argentina and Indonesia / anti-subsidy
proceeding initiated
- production and market share of verbiogas is increasing further
- use of palm oil for biodiesel production grows strongly
Zörbig / Leipzig, February 7, 2013 - VERBIO Vereinigte BioEnergie AG
(VERBIO) posts consolidated sales in the first six months of its financial
year 2012/2013 of EUR 408.8 million (1 HY 2011/2012: EUR 439.0 million)
which is 7 percent down from the previous year level. Overall, during this
period, 257,485 tons of biofuels were produced, compared to 310,922 tons in
the corresponding period last year. During the financial year, production
of biodiesel and bioethanol increased from 116,542 tons in the first
quarter to 140,943 tons in the second quarter. EBITDA and EBIT were
burdened over the entire reporting period by price and margin pressure in
the biodiesel business and the lower capacity utilization of biodiesel
plants. Compared to the same period last year, higher personnel costs,
other expenses and a negative result from commodity futures totaling EUR
-2.1 million (1 HY 2011/2012: EUR 6.0 million income) made an effect.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
amounted to EUR 8.0 million (1 HY 2011/2012: EUR 20.3 million.). The second
quarter of financial year 2012/2013 contributed EUR 6.4 million to the
EBITDA of the reporting period. The consolidated operating result (EBIT)
amounted to EUR -5.0 million and was below the comparable previous year's
figure (1 HY 2011/2012: EUR 7.4 million). After an EBIT of EUR -4.9 million
in the first quarter, the EBIT in the second quarter was EUR -0.1 million.
As at balance sheet date 31 December 2012, the equity ratio was 48.9
percent; financial resources available to VERBIO amount to EUR 28.9
million.
Fewer illegal imports of biodiesel from Argentina and Indonesia at the end
of the year
In the calendar year 2012, the German market for biodiesel was burdened by
imports of not sustainably produced and subsidized biodiesel (from soya and
palm oil) coming from Argentina and Indonesia and, compared to 2011, by
significantly higher imports of biodiesel from used cooking oils (UCO). It
is known that for the production of biodiesel from used cooking oil
partially not pure used cooking oil was used. The European anti-fraud
office OLAF currently investigates against a Norwegian producer. According
to available information there are on-going investigations against
individual producers respectively importers by the German customers
authorities. Out of this reason the Federal Environment Ministry has
reacted by tightening the registration duty for biodiesel from used cooking
oil, which came into effect January 1st, 2013, and already has caused a
significant volume reduction. The volume reduction can be judged as
evidence and scale to which extent the existing legislation was purposely
abused in 2012. It remains to be seen, which volumes of biodiesel from used
cooking oil with double counting will be registered and accepted as
fulfilment of the biofuel blending quota and what kind of consequences are
to be seen for the quota obligated party out of incorrect bio-balance
sheets.
On January 29th, 2013, the European Commission announced that all imports
of biodiesel from Argentina and Indonesia must now be registered. Following
a positive decision of an anti-dumping proceeding, punitive tariffs can now
be imposed 90 days retroactively on quantities that have already been
registered.
Despite positive signals it is still difficult to judge, how stricter
controls over the sustainability of biodiesel from used cooking oil and the
on-going anti-dumping proceeding against Argentina and Indonesia will
affect the further demand for biodiesel. Therefore, and also because of the
ongoing debate about the EU's amendment, it is not possible to give a
reliable forecast for the current financial year and future development. As
soon as there is more transparency, the Board will announce a new, reliable
forecast.
Use of palm oil for biodiesel production grows strongly
The fact remains that despite sustainability regulations by far the largest
volume of Biodiesel from palm oil was registered for the fulfilment of the
German and European biofuel targets in 2012. Because, the use of cheaper
palm oil compared to rapeseed oil from domestic production generates higher
margins and further on no measures of the politics against the use of palm
appears. VERBIO will also increasingly use palm oil for the biodiesel
production and reduce the use of rapeseed oil as far as possible in the
months to come.
Development of the Segments
Price and margin pressure in the biodiesel market in the first half of
financial year 2012/2013
The price and margin pressure in the biodiesel market in the first half of
financial year 2012/2013 resulted in lower utilization of the biodiesel
plants and thus led to lower sales in the domestic blending market compared
with the previous year. Fortunately the export quota for biodiesel could be
more than doubled from 10 percent up to 24 percent in the reporting period.
In the first half year 2012/2013, revenues achieved in the biodiesel
segment were EUR 233.2 million (1 HY 2011/2012: EUR 263.6 million). The
segment result amounted to EUR -0.6 million (1 HY 2011/2012: EUR 9.2
million). After standing at EUR -4.0 million in the first quarter of the
financial year, the segment result improved and showed EUR 3.4 million in
second quarter.
Utilization of the bioethanol plants adapted to the capacity of biomethane
plants
Given production of 84,098 tons of bioethanol in the first half year
2012/2013, the amount produced was less than that of the corresponding
period last year (1 HY 2011/2012: 111,781 tons). Utilization of ethanol
plants thus corresponded with the current capacity of biomethane plants,
which produced 182,188 MWh of biomethane in the first half of 2012/2013,
reflecting an increase of 42 per cent (1 HY 2011/2012: 128,034 MWh)
compared to the first half-year 2011/2012. Revenue in the bioethanol
segment amounted to EUR 119.6 million (1 HY 2011/2012: EUR 140.4 million).
The segment result for the first half year 2012/2013 amounted to EUR -1.9
million compared to EUR -2.0 million in the corresponding period last year.
The importance of biomethane as a biofuel in Germany has increased
considerably. Meanwhile, about 20 percent of natural gas in the fuel sector
has been replaced by biomethane. VERBIO is present with its product
verbiogas at 122 of the 137 natural gas filling stations, which offer 100
percent pure biomethane. This corresponds to a market share of 89 percent.
The growth in demand in the bioethanol blending market is stable. The
increased use of bioethanol in Germany is mainly attributable to fuel type
E10.
Revenue contribution from other segments EUR 56.0 million
In the first half year of 2012/2013, Märka GmbH generated EUR 50.9 million
(1 HY 2011/2012: EUR 30.4 million) from the sale of grain, seeds and
fertilizers with third parties. Due to the excellent progress of the
harvest, a much greater volume of grain and oilseeds was gathered than in
the same period in 2011. The segment result amounted to EUR -3.4 million (1
HY 2011/2012: EUR -0.9 million). The segment other contributed EUR 5.1
million (1 HY 2011/2012: EUR 4.6 million) and EUR 0.7 million (1 HY
2011/2012: EUR 1.1 million) to Group sales and Group operating result.
The Half-Year-Report 2012/2013 is available at
www.verbio.de/investor-relations/aktuelles-publikationen/finanzberichte/.
Information about VERBIO Vereinigte BioEnergie AG (VERBIO)
VERBIO is one of the leading independent producers and providers of
biofuels and is at the same time the only large industrial producer of
biodiesel, bioethanol and biomethane in Europe. The nominal capacity is at
a rounded 450,000 tons biodiesel, 300,000 tons bioethanol and 480 gigawatt
hours biomethane per year. In the production of its highly efficient fuels,
the company uses energy-saving production processes and innovative
technologies of own development. The biofuels of VERBIO achieve CO2
reductions of up to 90 percent compared to petrol or diesel. VERBIO
delivers its products directly to the European mineral oil conglomerates,
mineral oil trading companies, independent gas stations, freight
forwarders, municipal utilities and vehicle fleets. In addition, VERBIO
markets high-quality pharma glycerine for the consumer goods and cosmetics
industry (glycerine is gained as a by-product in biodiesel production).
Within the group, VERBIO Vereinigte BioEnergie AG acts as Management
Holding. The operative business is exercised by the subsidiaries, VERBIO
Diesel Bitterfeld GmbH & Co. KG, VERBIO Diesel Schwedt GmbH & Co. KG,
VERBIO Ethanol Schwedt GmbH & Co. KG, VERBIO Ethanol Zörbig GmbH & Co. KG
and Märka GmbH. The VERBIO stock (ISIN DE000A0JL9W6 / WKN A0JL9W) has been
listed at the Prime Standard of the Frankfurt stock exchange since October
2006.
Important notice
This Corporate News contains forward-looking statements, which are based on
assumptions and estimates of the company management of VERBIO Vereinigte
BioEnergie AG. Although the company management is of the opinion that these
assumptions and estimates are accurate, the actual future development and
actual future results may differ significantly from these assumptions and
estimates due to various factors. Among these factors may be, for example a
change in the overall economic situation, legal and regulatory framework
conditions in Germany and the EU, as well as changes within the industry.
VERBIO does not assume any guarantee or liability for the consistency of
the future development and the actual results achieved in the future with
the assumptions and estimates expressed in this Corporate News.
End of Corporate News
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Language: English
Company: VERBIO Vereinigte BioEnergie AG
Augustusplatz 9
04109 Leipzig
Germany
Phone: +49 (0)341 30 85 30 290
Fax: +49 (0)341 30 85 30 298
E-mail: ir@verbio.de
Internet: www.verbio.de
ISIN: DE000A0JL9W6
WKN: A0JL9W
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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200831 07.02.2013
DGAP-News: VERBIO Vereinigte BioEnergie AG: BUSINESS DEVELOPMENTS IN THE 2ND QUARTER OF 2012/2013 PROFITED FROM A DROP IN ILLEGAL IMPORTS
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